The speakerphone system of the invention enables the user to answer his telephone and converse with a calling party when his telephone answering machine is activated. This is a convenience since it enables the user to maintain his telephone answering machine active even when he is present, and it permits him at will to take calls or to let the telephone answering machine receive calls. To take a call, the user operates a switch on the telephone answering machine upon the receipt of a call, and communicates with the caller through a microphone and speaker within the machine. Muting circuitry is provided to prevent feedback between the microphone and the speaker. Accordingly, only one party can speak at any one time.